Outsourcing operations may save money

Bid from private firm indicates harbor could be managed for less

Hiring a private company to take over operation of Oceanside’s harbor could cut costs by 2.5 percent a year, based on a bid from a Torrance marina company.

The proposal from California Yacht Marinas of Torrance would save the city $148,249 in the first year, compared to what it costs for city workers to do the job, Harbor & Beaches Coordinator Frank Quan said in a recent memo to the City Council.

However, a bid from a second company came in $235,021 over what the city now pays to do the job in-house, Quan wrote. The two companies submitted bids when the city recently issued a “request for proposals” from any firms interested in running the harbor.

City Manager Peter Weiss said he won’t advise the council one way or the other on whether to go with a private company or stick with city workers when the matter goes to the council April 3.

“We are going to present the information for the council and have them give us direction for what to do,” Weiss said.

In the past when he’s prepared detailed recommendations in favor of outsourcing some city services along with proposed contracts to do so, the council opted to keep the work in-house, Weiss said.

For instance, the council last year rejected his recommendation to hire outside companies to take over street sweeping and vehicle maintenance and previously torpedoed talk of outsourcing library services before the city even called for bids.

“It really doesn’t make much sense for us to put together a comprehensive long-term contract with one of these proposals if the council isn’t interested,” Weiss said. “If they want to outsource it, we could come back fairly quickly” with a proposed contract.

Mayor Jim Wood said that as a matter of policy he “wasn’t interested in outsourcing.”

“It always sounds like it saves money, and it always doesn’t,” Wood said.

Nevertheless, the mayor said, “I still want to hear the details.”

“I’d be willing to listen to everybody and what they have to say about it,” Wood said.

Councilman Jerry Kern, who favored outsourcing some other city services, said, “I’m going to give it careful consideration.”

“I haven’t looked at all the numbers to make sure all the numbers match, that we can actually save money and we can take whatever money we can save and put it back into the harbor and beaches, the (beach) restrooms and things like that,” Kern said. “I just want to make sure it makes sense financially for us not only for the short term but the long term.”

Councilman Jack Feller, who killed talk of outsourcing library services, said the proposal would have to show “considerable savings” for him to go along with it.

“(The private companies’) toughest competition is the city employees, and I know those city employees do a great job for us. They’re congenial, and they’re helpful to outsiders,” Feller said.

On the other hand, Feller said the city must find some way of reducing rising pension and health insurance costs that the city must pay with city workers.